A.02.04_Justification_and_Approval__W91YTZ18R0069__under_13.501_(25Feb16).docx

Control Number: 19-RHCO-A-34 Control Number: 19-RHCO-A-34

Parata System Full Service Maintenance, Lyster Army Health Clinic, Fort Rucker, AL

Sole Source Justification and Approval Under FAR 13.501

1. Contracting Activity: Regional Health Contracting Office-Atlantic (RHCO-A), Gordon Health Contracting Cell, 43 Central Hospital Court, Fort Gordon, GA 30905

2. Description of Action: The Lyster Army Health Clinic (LAHC), Fort Rucker, Alabama requests a follow-on Firm Fixed Price contract effective 1 October 2018. This requirement is to provide maintenance services for Government owned Parata Pharmacy Dispensing Equipment. The base period of performance is 01 October 2018 through 30 September 2019 with four 12 month option periods beginning 01 October 2019 through 30 September 2023. Parata is the sole source manufacturer of Parata Pharmacy Systems that include proprietary software. The Parata maintenance services requires Parata certified technicians to provide any repairs or software upgrades. FY19 DHP funds will be used to fund the requirement. FY19 funds are currently not available. FAR Clause 52.232-18, “Availability of Funds” will be included in the resultant contract.

3. Description of Supplies/Services: This requirement is for maintenance and support of the Parata Max and Parata Mini and the Parata 2000 (Automation Software). The equipment is located in the Pharmacy Department of LAHC, Fort Rucker, Alabama. The total estimated value of the procurement is $488,965.80 including options. FAR Clause 52.217-8, “Option to Extend Services” and FAR Clause 52.217-9, Option to Extend the Term of the Contract will be included in the contract.

4. Authority Cited: 41 United States Code 1901 as implemented in Federal Acquisition Regulation 13.501(a)(1)(ii), sole source (including brand name) under the authority of the simplified procedures for certain commercial items.

5. Reason for Authority Cited: The Pharmacy Department currently has contract W81K00-15-C-0039 in place with Parata Systems to provide maintenance services, which expires September 30, 2018. The acquisition history for Government owned Parata Pharmacy equipment maintenance has consistently shown that only one proposal is received in response to Request for Proposals. In addition to the acquisition history, Parata Systems representative has provided a Sole Source letter (PCF Folder A.02.04, Parata Sole Source Statement) confirming that Parata Systems does not provide software upgrades or updates to hardware and software associated with any of its products. Parata does not offer or sell replacement parts or components to any customer without a maintenance plan. Soliciting Full and Open Competition will result in unnecessary delays in the acquisition process.

6. Efforts to Obtain Competition: A pre-solicitation notice was posted on the Federal Business Opportunities (FBO) website on 26 June 2018 with no responses received to date.

a. Effective competition. None, this equipment is proprietary and manufactured by Parata Systems, LLC as confirmed by the company and uploaded into PCF. Parata Systems, LLC is the only provider that can provide the necessary maintenance. If another vendor is allowed to work on the equipment, the warranty could become void.

b. Subcontracting competition. None, this item is a proprietary and manufactured by Parata Systems, LLC.

7. Actions to Increase Competition: There are no practical alternatives available to increase competition for this requirement. Parata Systems, LLC is the sole proprietor and manufacture of these items. The Contract Specialist posted a Special Notice on the Federal Business Opportunities page on 14 August 2018. To date no responses or inquiries have been received.

8. Market Research: Market research was conducted in accordance with FAR Part 10. Searches consisted of use of Google which shows several companies capable of providing commercial equipment maintenance services such as PharmTech, Evolution Scientific and Mayfield Medical Services. Additional market research using General Services Administration eLibrary Category Equipment Maintenance and Repairs using keywords Parata and maintenance yielded one vendor. Further market research was conducted using the Small Business Administration website and it was determined no small business are capable of providing Parata equipment maintenance services.

9. Interested Sources: To date, no other sources have written to express an interest. Also, state that the notices required by FAR 5.201 have been published, and any proposals received shall be considered.

10. Other Facts:

a. Procurement history.

(1) Contract numbers and dates of the last several contracts for these same requirements: W81K00-15-C-0039 awarded 28 September 2015 POP: 1 October 2015-30 September 2018 and W81K00-15-F-0016 awarded 14 July 2015 POP: 12 January 2015-30 September 2015.

(2) The previous acquisitions were solicited competitively; however, only one offer was received.

(3) Authority previously used for less than full and open competition is not applicable as the action was competed.

(4) A justification was not prepared to support the previous competitive action. No actions was taken by the Government to remove/overcome barriers for the previous action because Parata Systems LLC is the only vendor capable of maintaining their equipment and they do not train third party service providers, nor sell parts to third party service providers, for the maintenance of their equipment.

(5) Although the previous acquisition attempted to provide for full and open competition, only one offer was received from Parata Systems LLC. Parata Systems LLC is the sole manufacturer of these systems, components and proprietary hardware and software.

(6) There are no unusual patterns related to limiting sources for these services on Parata equipment. Parata is the only vendor that can perform these services as detailed above.

(7) N/A – the previous acquisition was awarded using full and open procedures.

b. Other facts. Based on prior history and confirmation of sole source proprietary letter from Parata, the Contracting Officer has determined that no other vendor has the capability to performance maintenance of the Parata equipment. Awarding the contract to a company that is not familiar with the equipment could result in loss of equipment which could cause the hospital to incur unnecessary re-procurement cost.

11. Technical Certification:

I certify that the supporting data under my cognizance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

Signature: ________________________________Date: __________ Typed Name: ____________________________Title:__________________________

12. Requirements Certification:

I certify that the supporting data under my cognizance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

Signature: ________________________________Date: __________ Typed Name: ____________________________Title:__________________________

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

Certified cost and pricing data is not required because of the exception for commercial contracts in FAR 15.403-1(b) (3). Other than cost or pricing data is required. The estimated value of this procurement for the period of performance from 01 October 2018 – 30 September 2023. Total estimated price of the requirement is $488,965.80.

Signature: ________________________________Date: ______________________ Typed Name: ____________________________Title:__________________________

14. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Signature: ________________________________Date: __________ Typed Name: ____________________________Title:__________________________

Approval Based on the foregoing justification, I hereby approve the procurement of Parata System Full Service Maintenance, with a total estimated price of $488,965.80 on an other than full and open competition basis pursuant to the authority of 41 U.S.C. 1901 as implemented by FAR 13.501, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Signature: ________________________________Date: __________ Typed Name: Title: Special Advocate for Competition

For Official Use Only (See FAR 2.101 and 3.104-4) (25 February 2016)

For Official Use Only (See FAR 2.101 and 3.104-4) (25 February 2016)